The post office in Great Neck is feeling the impact of the pandemic as the head of the U.S. Postal Service warned in Washington last week that the business is anticipating a loss of $13 billion in revenue this year.
Postmaster General Megan Brennan also said the postal system is facing a loss of another $54 billion in the next 10 years due to the coronavirus.
She discussed the expected revenue losses with the House Oversight and Reform Committee on April 9. Brennan told lawmakers that the agency would need $25 billion in federal grants to cover the revenue already lost at the invisible hands of the pandemic.
Brennan said an additional $25 billion would be required to enhance aging infrastructure, another $14 would be needed to pay off long-term debt related to a retirement benefits program, and another $25 billion would be essential for unrestricted borrowing authority, according to The New York Times.
“At a time when America needs the postal service more than ever, the reason we are so needed is having a devastating effect on our business,” Brennan said. “The postal service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover.”
Branches of the agency have been hurt by the virus in Nassau, with one representative from the Great Neck Annex saying their branch has been operating at 50 percent, on their best days.
“The plant is operating at 50 percent at best, many employees are out and are also doing the best they can processing mail since this COVID-19 has devastated our ranks and will change the way we operate forever,” the representative said in an email.
A spokesperson for the postal service said 693 of the agency’s 600,000 employees had tested positive for the coronavirus and several had died from it as of April 13, according to ABC News. The network said that number increased in 11 days from 259 confirmed cases throughout the agency.
Brennan warned the House Oversight and Reform Committee almost a year ago that the postal service would run out of money by 2024 without any congressional reform, even before the coronavirus pandemic.
“Absent legislation and regulatory reform, in all probability, we’ll be out of cash in 2024,” Brennan said. “That will threaten our ability to meet our obligation to the American public and to our business partners.”
According to statistics provided by the U.S. Government Accountability Office, the postal service has lost $69 billion over the past 11 fiscal years, including $3.9 billion in the 2018 fiscal year. The agency’s total unfunded liabilities and debt —$143 billion at the end of the 2018 fiscal year — have grown to twice its annual revenue, according to the statistics.
While losses in revenue appear to be inevitable going forward without any federal aid, the postal service released a statement that highlighted what precautions have been taken to ensure the health and safety of their employees.
“We have implemented measures at retail facilities and mail processing facilities to ensure appropriate social distancing, including through signage, floor tape, and “cough/sneeze” barriers,” according to a statement on the postal agency’s website. “We have changed delivery procedures to eliminate the requirement that customers sign our mobile delivery devices for delivery.”
One representative from the agency’s Roslyn branch, who asked not to be identified, declined to comment aside from saying the branch “has been complying with safety and social distancing measures set in place by the governor and the federal government.”
